LTM Ltd.
NSE: LTMLTM Ltd.: A 30-second snapshot
LTM (L&T Mindtree, formerly Mindtree merged with L&T Infotech) is an Indian mid-large IT-services company trading at ₹4,196, 18.15% below its 52-week high and 0.86% below its 50-DMA. Trailing PE of 24.8 is the second-highest in its six-company IT peer group; ROE of 21.3% and a quality score of 63 (highest in the peer group) reflect above-average business quality, though a debt-to-equity ratio of 9.58 stands as a significant structural outlier versus IT-sector norms.
P/E
24.8
Forward P/E
18.0
ROE
+21.3%
Debt / Equity
9.58
Profit Margin
+11.9%
Div. Yield
+1.9%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
63/100
News
8 headlines · 4 positive · 0 negative
LTM buys Randstad's Europe, Australia units in first acquisition since merger - Mint
Mint
LTM aims to double revenue to $10 billion by FY31, bets big on AI-led deals - Mint
Mint
LTM Limited schedules Investor Day 2026 in Mumbai - scanx.trade
scanx.trade
LTM Limited Files FY26 Annual Report; 30th AGM Scheduled for June 1, 2026 - scanx.trade
scanx.trade
LTM Ltd gains for third consecutive session - Business Standard
Business Standard
Recent context
- ·LTM announced the acquisition of Randstad's European and Australian staffing/technology units — described as the company's first acquisition since the LTM merger — broadening its geographic footprint in non-India markets.
- ·Management set a target of doubling revenue to $10 billion by FY31 at an Investor Day event, underscoring an ambition for an accelerated growth trajectory relative to the 6.1% 5-year revenue CAGR.
- ·The FY26 Annual Report was filed and the 30th AGM was scheduled for June 1, 2026; the company has also scheduled Investor Day 2026 in Mumbai, indicating active corporate-calendar activity.
Strengths
- +Quality score of 63 ranks first among the six IT peers (HCLTECH 40, WIPRO 46, TECHM 46, INFY 60, TCS 62), indicating composite business quality above the sector median.
- +Earnings growth of 23.4% over 5 years substantially outpaces the 5-year revenue CAGR of 6.1%, suggesting meaningful margin expansion or mix improvement over the period.
- +FCF was positive in 4 of 5 available fiscal years and ROE exceeded 15% in 4 of 5 years, indicating consistent capital generation despite the elevated leverage ratio.
- +Forward PE of 18.04 represents a 27.3% compression versus the trailing PE of 24.8, which reflects either expected earnings growth or multiple mean-reversion already priced in.
Weaknesses
- −Debt-to-equity of 9.58 is a structural outlier in the IT sector; all five peer companies carry D/E well below 1.0, and the debt trend is classified as rising — this is the single most anomalous data point in the fundamental profile.
- −5-year revenue CAGR of 6.1% is low for an IT-services company seeking to double revenue to $10 billion by FY31; the implied growth rate to hit that target by FY31 is substantially higher than the historical run-rate.
- −ROE of 21.3% ranks 4th of 6 in the peer group; TCS (48.4%) and Infosys (31.4%) both generate materially higher returns on equity, indicating a competitive gap on capital efficiency.
- −Technical history is limited to 69 bars, precluding SMA-200 computation or a 1-year return comparison; the stock is 18.15% below the 52-week high with a 3-month decline of 5.59%.
Open questions
- ?Does the debt-to-equity of 9.58 reflect structural leverage from the L&T–Mindtree merger, operating leases reclassified under Ind AS 116, or a different accounting treatment — and how does management plan to reduce it toward IT-sector norms?
- ?The $10 billion FY31 revenue target implies a multi-year CAGR well above the 5-year historical rate of 6.1% — what specific deal types, geographies, or service lines underpin that acceleration, and how does the Randstad acquisition contribute?
- ?Quality score ranks first in the peer group yet ROE ranks fourth; what explains the divergence — is it the elevated leverage ratio inflating or deflating ROE, or are there profitability components where LTM trails peers?
- ?With technical history limited to 69 bars and SMA-200 unavailable, what longer-dated price benchmarks or fundamental milestones would help assess whether the 18.15% drawdown from the 52-week high represents a company-specific shift or broad IT-sector pressure?
Peer comparison: IT
Ranks 1 of 6 on qualityTechnical state
Current price
₹4,196.10
SMA 50
₹4,232.46
SMA 200
—
RSI (14)
52.9 (neutral)
From 52w high
-18.1%
1Y return
—
3M return
-5.6%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 9.58 is a severe outlier for an IT-services company; all five listed peers (TCS, Infosys, HCL Tech, Tech Mahindra, Wipro) carry D/E well below 1.0. The debt trend is flagged as rising and the fundamental consistency score stands at 51/100, compounding the structural leverage concern.
- mediumOnly 69 price bars are available, insufficient to compute SMA-200 or a 1-year return. Price is currently 0.86% below the 50-DMA (₹4,196 vs ₹4,232) and is 18.15% below the 52-week high. The 3-month price change is −5.59%.
- medium5-year revenue CAGR of 6.1% is modest relative to the implied growth in a forward PE of 18.04; earnings growth of 23.4% over 5 years has not been matched by equivalent top-line expansion, creating uncertainty about whether the forward multiple is sustainable.
- lowLTM ranks 5th of 6 on PE (24.8 vs sector median ~18.2) and 4th of 6 on ROE (21.3% vs TCS 48.4%, Infosys 31.4%), placing it in the lower half of the IT peer group on these two metrics despite leading the group on quality score (rank 1 of 6, score 63).
Cross-section contradictions
- Quality score of 63 ranks 1st among the six IT peers, yet ROE of 21.3% ranks 4th — the quality-composite and the return-on-equity rankings within the same peer set point in opposite directions.
- News sentiment is entirely non-negative (4 positive, 0 negative out of 8 articles) and recent headlines include a major cross-border acquisition and a $10 billion revenue target for FY31, yet the stock is 18.15% below its 52-week high and down 5.59% over the past 3 months.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days